Mastercard
Chargeback Reason Codes

4807

Issuer is unable to verify that an authorization code was obtained at the time of the transaction.

90 calendar days

45 calendar days

n/a

• See Code 4808

The merchant didn’t obtain authorization or got it too late.

90 calendar days

45 calendar days

The merchant didn’t obtain authorization or attempted to obtain authorization after the transaction date; the merchant attempted to “force” the transaction; the merchant re-swiped the card multiple times after an initial authorization decline.

• Confirm authorization on all transactions
• Make sure terminal are chip-compliant
• Do not override declined transactions

4812

The issuing bank can’t find an account with the number used.

90 calendar days

45 calendar days

The transaction was below the applicable limit and authorized offline by the chip; account number was not entered on Electronic Warning Bulletin prior to the transaction; transaction was processed using a retired account number, but later received authorization.

• This code, while currently functional, is being consolidated into 4808, and therefore should not be used.

The merchant failed to request necessary authorization.

90 calendar days

45 calendar days*

The merchant was required to request authorization for the transaction, but did not.

• Always request authorization request before processing a transaction
• Do not exceed 20% when adding gratuities
• Adhere to Mastercard regulations and best practices

n/a

The transaction was not settled until after its expiration deadline, at which point the cardholder’s account was no longer active/in good standing.

90 calendar days

45 calendar days*

The merchant waited too long to settle the transaction.

• Always request authorization before processing a transaction
• Settle pre-authorized transactions within 30 calendar days of the latest authorization date
• Settle any transaction that are not pre-authorized within seven calendar days of the authorization date

A card-not-present transaction was declined by the issuer but later approved using Stand-In processing or X-Code.

90 calendar days

45 calendar days*

The original attempt at authorization was not approved, but the merchant swiped over and over to receive authorization.

An alternative authorization method was used (key entering, voice authorization).

• Always request authorization before processing a transaction
• Terminate any declined transactions and request an alternate method of payment
• Adhere to Mastercard rules and regulations

4807 (Warning Bulletin) or 4812 (Account Number Not on File)

Unauthorized transactions processed at a cardholder-activated terminal (CAT).

90 calendar days

45 calendar days*

The amount of a CAT 3 transaction exceeded the acceptable limit; a card used in a CAT 3 transaction was not valid at the time.

• Always request authorization before processing a transaction
• Terminate any declined transactions and request an alternate method of payment
• Adhere to Mastercard rules and regulations

4842

The transaction was not deposited within 30 days of the date a valid authorization code was obtained.

90 calendar days

45 calendar days

The transaction wasn’t processed in a timely fashion and the account has since been closed; transaction was posted after 180 days of the original transaction date.

• Send completed transactions to your card processor as soon as possible (preferably on day of the sale)

n/a

A single transaction was processed more than one time.

90 calendar days

45 calendar days

The merchant submitted a single batch of transactions multiple times; the merchant deposited both copies of the sales receipt (merchant and sales copy); the merchant created two sales receipts for a single transaction; the merchant deposited a receipt with more than one acquirer; the merchant processed a single transaction multiple times.

• Review transaction receipts before depositing
• Submit a batch only one time
• Credit any duplicate transactions
• Deposit receipts with only one acquirer
• Train staff on the proper procedures for handling credits

4831

The amount the cardholder was charged doesn’t match what’s on the receipt.

90 calendar days

45 calendar days

The merchant made an error when calculating the transaction amount; the merchant increased or otherwise altered the amount after the transaction was completed (without the cardholder’s permission).

• Double check calculations and the final transaction amount before processing
• Don’t change the transaction amount without the cardholder’s consent
• Void any transactions if the cardholder wishes to use a different payment method

4846

The merchant failed to provide adequate currency information or properly process a credit.

90 calendar days

45 calendar days

The transaction currency differs from the currency transmitted through Mastercard; the cardholder was not advised or did not agree that Dynamic Currency Conversion (DCC) would occur.

• Inform cardholders of the use of currency conversion and applicable fees
• Always give the cardholder the option to make the purchase using local currency
• Train your sales staff on proper procedures for transaction using a different currency

n/a

A single transaction was processed more than one time.

120 calendar days

45 calendar days*

The merchant submitted a single batch of transactions multiple times; the merchant deposited both copies of the sales receipt (merchant and sales copy); the merchant created two sales receipts for a single transaction; the merchant deposited a receipt with more than one acquirer; the merchant processed a single transaction multiple times on same card or to another payment method.

• Review transaction receipts before depositing
• Submit a batch only one time
• Credit any duplicate transactions
• Deposit receipts with only one acquirer
• Train staff on the proper procedures for handling credits

n/a

The cardholder charges that inaccurate amount of cash was dispensed by an ATM, or that the ATM withdrawal had been debited to the account multiple times.

120 calendar days

45 calendar days*

ATM issues.

• Reconcile ATMs in a timely manner
• Report out-of-balance ATMs

4859 (Addendum, No-show, or ATM Dispute)

The cardholder claims an unauthorized charge for loss, theft, or damage was added to the transaction up front.

90 calendar days

45 calendar days*

The merchant processed a transaction which included an upfront charge for loss, theft, or damage, without the cardholder’s approval.

• Do not add damage charges to a transaction without the knowledge and agreement of the cardholder
• Clearly explain any circumstances which might trigger a charge for loss, theft, or damage
• If loss, theft, or damage charge is to be added, process the original transaction, then process a second transaction for any additional fees

n/a

The cardholder claims he or she did not authorize the transaction.

120 calendar days

45 calendar days

The transaction was made by someone who had fraudulently obtained the account information; the cardholder didn’t recognize the transaction (billing descriptor) on the credit card statement; a family member used the account without the primary cardholder’s knowledge.

• Create clear billing descriptors
• Do not accept expired cards under any circumstances
• Obtain secondary validation (PIN, signature, imprint etc.)
• Do not override declined transactions
• Train staff on the proper procedures for handling terminal issues

This transaction violates Mastercard’s rules or the merchant was on a Mastercard security list.

120 calendar days

45 calendar days

The acquirer processed a transaction for a merchant that later was listed in a MasterCard Global Security Bulletin for violating QMAP

• Maintain accurate records
• Check transactions against the Mastercard Global Security Bulletin list

n/a

A fraudulent transaction was processed using a counterfeit EMV chip card, but the chip was not used, which allowed fraud.

120 calendar days

45 calendar days

The use of an EMV chip card resulted in a fraudulent transaction at a non-hybrid terminal; the use of an EMV chip card resulted in a fraudulent transaction at a hybrid terminal (with or without a PIN pad).

• Upgrade to compliant terminals
• Make sure to obtain the correct Cardholder Verification Method (CVM), such as a signature or PIN
• Take an imprint (either electronic or manual) for every card-present transaction where a chip card is not used

n/a

A fraudulent transaction was processed using a lost, stolen, or never received EMV chip card, but the chip was not used, which allowed the fraud.

120 calendar days

45 calendar days

The use of an EMV chip card resulted in a fraudulent transaction at a non-hybrid terminal; the use of an EMV chip card resulted in a fraudulent transaction at a hybrid terminal (with or without a PIN pad).

• Upgrade to compliant terminals
• Make sure to obtain the correct Cardholder Verification Method (CVM), such as a signature or PIN
• Take an imprint (either electronic or manual) for every card-present transaction where a chip card is not used

4841

Cardholder claims the merchant continued to bill the card after a recurring transaction was cancelled, or without explicit consent from the cardholder.

120 calendar days

45 calendar days

Cardholder did not understand the original terms of the transaction; cardholder received goods/used services after cancelling the recurring transaction; cardholder canceled too late to stop the transaction; merchant did not cancel the transaction.

• Immediately fulfill qualified cancellation and/or non-renewal requests
• Confirm cancellations via email or text
• If a chargeback is issued, immediately cancel future transactions

4855

The product never arrived, or the service wasn’t completed.

The timeline may vary based on the start date:

Unspecified delivery date or service performance date: Issuer must wait a minimum of 30—but no more than 120—calendar days past the transaction processing date to initiate a chargeback; this 30-day waiting period may be waived if the merchant has gone out of business.

Delivery/service date was specified but has passed: The chargeback must be initiated no later than 120 calendar days past the transaction processing date.

Terminated ongoing services: The chargeback must be initiated within 120 calendar days past the date services ended (not to exceed 540 days of the original transaction processing date).

Prepaid gift cards where the merchants has since gone out of business: In these situations, the chargeback must be initiated within 120 calendar days of the card’s expiration date if the card has no expiration date, the chargeback must be initiated within 540 calendar days of the transaction processing date.

45 calendar days

The merchant failed to provide goods or services; the merchant has gone out of business or can no longer provide the goods or services for some other reason.

• Adhere to promised delivery dates
• Accurately describe the services that will be provided, including availability window
• Do not process the charge prior to order shipment
• Immediately advise customers of unforeseen delays (merchandise is out of stock, shipping delays, etc.)

The cardholder claims to have been charged a no show fee when they cancelled with the hotel participating in the Mastercard Guaranteed Reservation Service.

120 calendar days

45 calendar days

The lodging merchant (typically a hotel) added a “no-show” fee to the original transaction without informing the cardholder.

• Clearly explain all no-show/cancellation terms and costs prior to finalizing the reservation
• Respond to cancellation requests in a timely manner, and confirm with the cardholder
• Train staff members on the correct ways to handle cancellations or reservation changes

The cardholder claims an additional, unauthorized charge was added after a valid transaction without their consent.

120 calendar days

45 calendar days

The merchant added an additional charge without informing the cardholder.

• Clearly explain all term and conditions and costs prior to finalizing
• Respond to cancellation requests in a timely manner, and confirm with the cardholder
• Train staff members on the correct ways to handle cancellations or reservation changes

4860

The cardholder did not receive an expected credit.

Chargebacks must be processed within 120 calendar days of either the date on the credit documentation, the date of service cancellation, or the date merchandise was returned.

45 calendar days

The merchant did not acknowledge the return or cancellation; the merchant failed to process the credit or reversal; the merchant failed to fully explain the return/cancellation policy.

• Process all qualified requests for cancellation or refund as soon as possible
• Clearly advise customers on no-return or limited return policies, including any fees
• For card-not-present transactions, require customer acknowledgment and confirmation action prior to final purchase
• Refuse delivery of any returns that do not adhere to your stated policy
• Advise the customer if the credit will be for a lesser amount, and explain why

n/a

The cardholder claims the merchandise received (or service provided) differs greatly from the description provided at the time of purchase.

Disputes must be processed within 120 calendar days of either the transaction processing date, the date the merchandise was delivered, the service cancellation date, or the date services ended (not to exceed 540 days of the original transaction processing date).

45 calendar days*

The merchant shipped the wrong merchandise to the cardholder; the merchandise was damaged during shipment due to improper packing; the merchandise was defective in some way before shipping; the merchant inaccurately described the merchandise or services; the merchant did not perform the services as described.

• Check all service and product descriptions for clarity and accuracy
• Immediately fulfill all valid requests for replacements or refunds
• Do not refer customers to the manufacturer in cases of damaged or defective goods
• Employ best practices for packing/shipping

4841

The cardholder claims that card information used to create an account for digital purchases lacked necessary purchase controls, leading to unauthorized purchases.

120 calendar days

45 calendar days*

The merchant did not ensure that sufficient purchase controls were in place for the account, and digital goods were purchased (valued at less than $25).

• Disable purchases by default and require cardholders to opt-in for purchasing
• Require cardholders to provide authentication information before each purchase
• Time-out purchase ability after a set period of inactivity.
• Clearly show total transaction amounts for pending purchases and require cardholder confirmation
• Confirm purchases immediately via email or text

n/a

The cardholder received counterfeit merchandise.

Disputes must be processed within 120 calendar days of either the transaction processing date, or the date the goods or services were received (in cases of delayed delivery).

45 calendar days*

The merchant knowingly or unknowingly shipped goods that were not what they were claimed to be.

• Order and sell only genuine merchandise
• Check to ensure that inventory is what it claims to be
• Double-check all product descriptions for accuracy

4855

Merchandise or services were not used by the purchaser, who believed the transaction was not actually processed.

120 calendar days

45 calendar days*

The cardholder believed that goods or services were not provided (and therefore were not used) because the transaction was never processed.

• Always confirm transactions via text or email

4860

A credit was processed as a debit.

120 calendar days

45 calendar days*

The merchant knowingly or unknowingly processed a sale which should have been processed as a credit.

• Train staff on the proper procedures for processing credits

n/a

The cardholder claims an installment charge made to their account was incorrect.

120 calendar days

45 calendar days

The merchant charged the cardholder prematurely; the merchant charged the cardholder the incorrect amount, or the transaction was not an installment.

• Make sure you bill the cardholder installment transactions correctly as agreed
• Train staff on importance of accuracy

n/a

The cardholder has made an unsuccessful good-faith effort to resolve a dispute with the merchant.

120 calendar days, or 60 calendar days from first learning about the dispute from the cardholder

45 calendar days

Merchant did not resolve the issue, or did not resolve the issue in a timely manner; the cardholder is making fraudulent claim.

• Resolve all customer complaints as quickly as possible

Issuer is unable to verify that an authorization code was obtained at the time of the transaction.

45 calendar days

45 calendar days

n/a

• This code, while currently functional, is being consolidated into 4808, and therefore should not be used.

The issuing bank can’t find an account with the number used.

45 calendar days

45 calendar days

n/a

• See Code 4808

The cardholder claims to have been charged a no-show fee when they cancelled with a hotel participating in the Mastercard Guaranteed Reservation Service.

120 calendar days

45 calendar days

n/a

• See Code 4853

The cardholder did not receive an expected a credit.

120 calendar days*

45 calendar days

n/a

• See Code 4853